Finding Text
Compliance Requirement: Per 2 CFR § 200.512(a)(1), the audit reporting package must be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The Organization did not submit its reporting package for the year ended June 30, 2025 within the required nine-month timeframe. Context: The delay in submission was the result of the financial statement audit not being finalized within the required timeframe. Timely submission of the reporting package is dependent upon completion of the audit. A similar delay occurred in the prior year. Cause: Controls over the financial reporting and audit completion process were not sufficiently effective to ensure that the audit was completed in time to meet Uniform Guidance reporting deadlines (see finding 2025-001). While processes existed to track audit progress and reporting requirements, execution of those processes did not consistently result in timely completion. Effect: Failure to submit the reporting package within the required timeframe resulted in noncompliance with Uniform Guidance reporting requirements. However, the delay did not impact the underlying financial statements, the results of the compliance audit, or the Organization’s compliance with federal program requirements, and no questioned costs were identified. Recommendation: Management should enhance controls over the financial reporting and audit process by establishing a detailed audit timeline, strengthening monitoring of progress, formalizing escalation procedures, and improving coordination with external auditors. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the delay and has taken steps to improve the timeliness of the audit and reporting process, including implementing a formal audit timeline, increasing oversight of audit progress, and enhancing coordination with external auditors.